'We continue to have good relations with US': Piyush Goyal hopeful of resolving tariff row
“There is no need to panic,” Goyal said in an interview with ANI on Thursday. “We continue to have good relations with the United States, and I am sure we will be able to resolve some of these issues and come to an equitable, balanced and fair agreement.”
- Sep 5, 2025,
- Updated Sep 5, 2025 8:06 AM IST
Union Commerce Minister Piyush Goyal has downplayed concerns over the steep 50% tariff imposed by the United States on Indian goods, urging calm and stressing that negotiations are ongoing to reach a “balanced and fair agreement.”
“There is no need to panic,” Goyal said in an interview with ANI on Thursday. “We continue to have good relations with the United States, and I am sure we will be able to resolve some of these issues and come to an equitable, balanced and fair agreement.”
The reassurance comes as Indian exporters face mounting pressure following President Donald Trump’s decision to double tariffs on Indian goods—from an initial 25% to 50%—citing New Delhi’s continued imports of Russian crude. The secondary tariff came into force on August 27 and applies to all Indian goods entering the U.S. market or withdrawn from bonded warehouses for domestic sale.
Goyal declined to set a timeline for the resolution. “There is never a timeline in negotiations,” he said. “You should do it patiently, as you are doing it for the long term.”
The tariff escalation coincided with major tax reforms at home. The 56th GST Council meeting on September 3 decided to rationalize India’s GST structure by merging the 12% and 28% slabs into a simplified two-tier system—5% and 18%. Compensation cess on coal, carbonated beverages, and mid- to large-sized cars was also scrapped.
Goyal emphasized that the timing of the reforms and the U.S. tariff hike was purely coincidental. “Such reforms cannot happen overnight… It's a matter of chance that the two have coincided,” he said.
The GST restructuring is expected to ease compliance while providing relief across key sectors. However, exporters now face a volatile global trade environment, with Washington’s punitive tariff move adding new uncertainty to India-U.S. economic ties.
Union Commerce Minister Piyush Goyal has downplayed concerns over the steep 50% tariff imposed by the United States on Indian goods, urging calm and stressing that negotiations are ongoing to reach a “balanced and fair agreement.”
“There is no need to panic,” Goyal said in an interview with ANI on Thursday. “We continue to have good relations with the United States, and I am sure we will be able to resolve some of these issues and come to an equitable, balanced and fair agreement.”
The reassurance comes as Indian exporters face mounting pressure following President Donald Trump’s decision to double tariffs on Indian goods—from an initial 25% to 50%—citing New Delhi’s continued imports of Russian crude. The secondary tariff came into force on August 27 and applies to all Indian goods entering the U.S. market or withdrawn from bonded warehouses for domestic sale.
Goyal declined to set a timeline for the resolution. “There is never a timeline in negotiations,” he said. “You should do it patiently, as you are doing it for the long term.”
The tariff escalation coincided with major tax reforms at home. The 56th GST Council meeting on September 3 decided to rationalize India’s GST structure by merging the 12% and 28% slabs into a simplified two-tier system—5% and 18%. Compensation cess on coal, carbonated beverages, and mid- to large-sized cars was also scrapped.
Goyal emphasized that the timing of the reforms and the U.S. tariff hike was purely coincidental. “Such reforms cannot happen overnight… It's a matter of chance that the two have coincided,” he said.
The GST restructuring is expected to ease compliance while providing relief across key sectors. However, exporters now face a volatile global trade environment, with Washington’s punitive tariff move adding new uncertainty to India-U.S. economic ties.